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Can't pay your tax bill? You have options

At tax time, many Americans are eager to get their returns in so they can receive a nice refund check from the Internal Revenue Service. But it's not a universal truth that tax time means a nice payday. Like

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At tax time, many Americans are eager to get their returns in so they can receive a nice refund check from the Internal Revenue Service. But it's not a universal truth that tax time means a nice payday.

Like it or not, some have to pay even more to the tax man come April 15.

This is generally not a happy situation to be in. But even worse is being up against a tax bill when you simply can't find the money to cover the tab.

If you don't have the cash, don't panic. There are a few options out there.

Ask a pro for help. Did you arrive at a big tax bill after crunching the numbers yourself? Well, perhaps it's worth visiting a certified public accountant or other knowledgeable professional to look for missing deductions or credits. After all, tax preparation itself is deductible — so that's one more item to reduce your tax burden right there.

Make a payment agreement. If you owe less than $50,000 in tax, penalties and interest then you can strike an installment deal with Uncle Sam instead of making a lump sum payment. You have to be approved for this kind of deal, but applying is very simple on IRS.gov. This service isn't free, however, and still comes with fees and interest charged by the tax man along the way.

Use a credit card or bank loan. This may sound illogical to run up personal debts with double-digit interest rates to pay off the IRS. However, this bit of advice comes from the tax man himself. Topic 202 on IRS.gov regarding payment options reads, "The interest rate and any applicable fees charged by a bank or credit card company are usually lower than the combination of interest and penalties imposed by the Internal Revenue Code." The fact that the government itself recommends you pick this option is a pretty compelling case you can save money this way.

Pay what you can. If you can't get access to credit or worry about your ability to pay the tax bill in installments, it is much better to scrape together as much as you can rather than pay nothing. The IRS will send you a bill in a month or two – including some penalties, of course. As with all creditors, the Internal Revenue Service is ultimately kinder to those who do something instead of nothing. And like all bills that charge interest, the more you can pay up front means the more you'll be charged in fees over time as you try to whittle down the tab.

Of course, those in desperate situations can sometimes do foolish things. So here are a few things you should assuredly NOT do if you're facing a big bill:

Don't lie. If you think the late fees are bad, let's not even talk about the charges – both monetary and criminal – that come with tax fraud. It's simply not worth it.

Don't skip your return. Ignoring the bill won't make it go away or free you from late penalties. Failure to file a tax return is a big red flag with auditors, and they'll find you eventually.

Don't ask for an extension. An extension to file is not an extension to pay. Even if you are granted an extra six months to finish up your paperwork, your bill is due April 15 – and interest and penalties start that day regardless of when you finish the return. If you've done your paperwork and know there's a bill due, just file and face the music.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor's Guide to Finding Great Stocks.